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A development of townhouses in Buffalo’s Fruit Belt neighborhood has won a grant for $857,500 from the Federal Home Loan Bank of New York.

The grant will help finance the St. John Townhomes II project, which includes 49 affordable housing units in 22 buildings on 17 sites. The first phase, which included 28 units, was finished in 2007.

The bank also awarded a $400,000 grant to the Lackawanna Homes project, which includes 48 single-family homes and a community center built by the Lackawanna Housing Development Corp.; and a grant of $163,800 to Niagara Community Action Program to help finance the rehabilitation of 20 houses owned and occupied by very low-income families in Niagara County.

Applications for the funding were submitted by M&T Bank and First Niagara Bank.

The Federal Home Loan Banks’ Affordable Housing Program provides local banks with direct subsidies, which are passed on to community organizations.